Demand and supply
- Created by: izzy
- Created on: 09-06-13 15:35
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- A competitive market contains a large number of firms producing similar goods or services.
- New firms can easily enter a competitive market, and incumbent firms can easily leave.
- The price mechanism allocates scarce resources between competing uses in a competitive market.
- In a competitive market, a good's price is determined by supply and demand.
- When planned demand equals planned supply, the market is in equilibrium.
- Market disequilibrium means that…
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